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Credit One Platinum Card Review

Wondering which credit card is right for you? The Credit One Platinum card is a great choice for some people – this review will tell you if you’re one of them.

When you need to build credit but don’t have a great credit history, the Credit One Bank might be one of the few financial institutions that will approve you for a card. They have a history of approving people who have poor credit, allowing them to build their credit back up.

However, there are some drawbacks to this benefit. If you’re not careful, you could end up getting punished for the privilege of getting a card when you have bad credit. In this guide, we’ll show you everything you need to know about the Credit One Platinum Visa, from the good to the bad and everything in between. Keep reading to learn more!

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The Basics

The Credit One Platinum Visa is a credit option from Credit One Bank. This bank offers credit to borrowers with a poor credit history, but it makes money off this strategy by charging a lot of fees.

The annual fees tend to vary, but they can run as much as $75 in the first year and $99 for each subsequent year. When you open the card, your first annual fee is automatically charged and reduces your credit amount.

This can significantly impact your credit situation. For example, if you’re approved for the minimum amount of $300, after paying the annual fee you’ll only have $225 of credit left. However, some accounts charge the annual fee by incremental monthly amounts instead of one large yearly fee. You won’t know which way your account works until you open it.

The Pros

Because of all the fees, this is a high-risk credit card. As most Credit One card reviews will tell you, there are many other cards you can get that are a safer choice. However, if you don’t have any other cards that you qualify for, and you don’t have the deposit needed for a secured credit card, you may want to get a Credit One card.

The Credit One Platinum isn’t ideal, because all the fees can quickly take up most of your credit limit. The main reason to get a card like this is when you need to build up a good credit history so you can qualify for a better card in the future.

Make sure you’re prepared to make your payments on time and often before you get this card. If you don’t think you can keep up with payments, you’re better off with no credit card at all.

The Cons

The annual fee isn’t the only fee you’ll need to think about before getting a Credit One Platinum card. For example, if you put another authorized user on your account, you’ll have to pay another annual fee of $19 for that user. If you lose your card, a replacement costs $25.

The annual percentage rate, or APR, on things you buy, will change depending on what your credit history is. If you started out with a good credit score, you can usually get a lower interest rate. However, if you need a cash advance, the APR tends to be higher.

Cash advances also come with their own fees. If you’re not sure what the fee for a cash advance on your card is, you shouldn’t take one until you find out. This charges can be dollar amounts or percentages, and they can be very high.

If you have a late or returned payment, your fees will be at least $35 each time it happens – maybe more. Some credit accounts also don’t come with a grace period, so you might start getting charged for interest immediately.

This means you can’t avoid interest by paying in full. However, you can keep the interest level to a minimum by regularly paying off your entire credit card balance.

One more fee from Credit One Bank is the credit limit increase fee. Each time your credit limit goes up, you have to pay a fee up to $49. This can apply even if you didn’t request the limit increase but were still given one.

How to Manage Your Credit One Platinum

Once you have the card, how can you use it wisely?

First, make sure to pay off your annual fee amount immediately, so the rest of your credit is free for use. And if the card doesn’t come with a grace period, be sure to pay your annual fee before you get your statement in the mail, and before using your card to make any purchases.

Avoid making many purchases on your Credit One Platinum card. The lower your credit limit, the less you should use it. Stick to charging no more than 30 percent of your total credit limit at a time. This means that if you have a limit of $300, your card should never carry a balance of more than $90.

If you do this and make regular, on-time payments, you’ll quickly be able to build a better credit score. You’ll also avoid getting into credit debt that’s hard to get out of.

If your card has no grace period, make each payment before its due date, so you’ll pay as little interest as possible. Otherwise, the interest is growing even before your payment comes due.

Stick to this plan of using your Credit One Platinum Visa, and in about six months to a year, you should be able to qualify for a better card that has fewer fees. Then, close this card for good and focus on using your new card responsibly.

The Verdict

Opening a Credit One Platinum card can seem like a needless waste. You’ll be paying all these fees and going through a lot of trouble just to build your credit.

However, having good credit can open up many opportunities for you. You’ll want that credit so you can qualify for loans, pay lower interest, and more.

Want to learn more about getting your financial life in order? Check out our learning center here.

About Post Author

Jennifer is a credit cards expert at Bonsai Finance. As a world traveler, she has visited 30 countries in 6 continents and counting, with much of that travel on points. Jennifer has a bachelor’s degree from Colgate University and a Masters from SUNY Oswego. Her wallet holds 8 credit cards and counting.